NATURAL GAS: Winter TTF Premium Over Summer Falls From Peak Last Week
May-17 10:36By: David Lee
The TTF gas premium of Q1 2024 over Q3 2023 has narrowed by over 4€/MWh in the last week as falling summer natural gas prices and steady European storage injections have started bringing winter forwards lower.
- Upside risks from a cold winter and increased LNG demand from Asia had driven the spread as high as 21.6€/MWh on 11 May. The reached a low of around 17.4€/MWh yesterday before recovering to 18.15€/MWh today.
- Tighter supplies, signs of increasing demand from Japan and mainland China in the last week, and the forecast of warmer weather across Europe are supporting TTF markets today. Norwegian field maintenance into June and the Hammerfest LNG outage until 27 May are limiting short term supplies into Europe.
- TTF JUN 23 up 2.3% at 32.57€/MWh
- TTF WIN 23 up 3.2% at 49.25€/MWh
- TTF SUM 24 up 3.2% at 49.41€/MWh
Source: Bloomberg
